Hedge fund manager Hugh Hendry (I am his fan) is launching a new fund called the Eclectica Credit fund, or the "beat the politicians fund" (his pet name for it).

Here's how he described its strategy at the recent GAIM hedge fund conference:

"In all seriousness, the politicians are out to get us, they're out to get hedge fund managers. And I don't think it's justified, but it's a reality. And I had a famous disagreement, if you will, with the world renowned economist Jeffrey Sachs on British television recently and I took great um bridge with his notion that speculators, [or] that the travails of Europe were formed 10 weeks ago.

"The reality is that global macro managers like myself have been thinking about these issues and have been articulating our great fears not for 10 weeks, but for 10 years.

"And therefore.. I'd say to the politicians, we're smarter."
OH! Shots fired. (Later, he also took a slight shot at John Paulson: "For all the craft and the guile and the intelligence Paulson - he also got a bit lucky.")

He goes on about speculators vs. politicians:

"We actually know what their next step is before they know it."
For example -

"In taking on a naked short position in the Greek CDS, that was not contentious when it traded at 50 basis points, today it trades at 900 and they wish to abolish it. So the reality is that you have to move on and find asset classes that are priced as though they're not contentious, but they're priced as though they have the prospect of being contentious.

"The most contentious thing that you can say today is that you're agnostic. In fact, its more than that, to say you are bearish on the prospects of China, commodities, and being long corporate credit.
"And I wish to confess that I am guilty as charged."

Watch the rest below.